Security matters no stranger to family firm

With grim news about the economy seemingly coming in waves, now is surely the time for monetary policymakers at the Bank of England to follow the lead of their American peers and throw caution to the wind.

The least that small and med ium-sized firms could do with is for the Bank's Monetary Policy Committee to slash interest rates by 0.5%, to 4%, when it meets this week.

Of course, any such action will only help if the banks that got us all into such a mess pass on the benefits to customers, including SMEs, which are feeling the pinch of credit rationing and increased borrowing costs.

Only this week, one businessman told The Herald his bank wanted to charge interest at more than twice the 4.5% base rate and levy swingeing fees for the benefit of a temporary increase in his overdraft.

In a rare departure from what has become the norm, in this week's SME Focus a security specialist stands up for his bank but joins the chorus of voices calling for the government to do more for smaller players.

However, having survived challenges which would turn even the strongest of stomachs, Paul Connelly can at least have confidence in his ability to navigate through choppy waters.

Name: Paul Connelly.

Age: 45.

What is the business called? Connelly Security Systems (CSS).

Where is it based? In Glasgow, with field-based service support engineers operating across Scotland.

What services does it offer? It supplies installation, maintenance and monitoring services for the electronic security and fire industries, specialising in intruder alarms, CCTV systems, fire alarms and access control systems.

We also own and operate our own 24-hour alarm receiving from our headquarters in Glasgow. This centre has direct links to the emergency services and monitors dedicated signals from our customer's premises.

To whom does it sell? Predominately the private business sector, property management companies, legal firms, warehousing, retailers, licensed premises, and a large domestic sector via housebuilders and direct business from homeowners. We have very limited public sector work.

What is its turnover? Around £4m per year.

How many employees? There are 50.

When was it formed? In 1986.

Why did you take the plunge? Since I was 12-years-old and delivering a morning paper round in the Milton area of Glasgow, I enjoyed meeting different people and earning a little money.

I was one of 10 children and I loved the different personalities of the other siblings. From that early age I knew I wanted to be my own boss but didn't know how or when or if that would pan out.

I wasn't particularly interested in school and was disengaged. I was a bit of a daydreamer itching for the school bell to go. I left school without any qualifications.

I started work as an apprentice alarm system engineer and I was surprised at the lack of customer care. Even at an early age I believed that some customers were treated as if they were doing that business a favour.

My two brothers were both also involved within the electronic security industry and they, too, felt that there was a small gap in the market for a company to fit in between one-man-band companies and the multinationals who weren't particularly interested in customer care in my view, and were also consolidating in Scotland at that time.

What were you doing before you took the plunge? I was a service engineer for a multinational company which had a regional office in Bishopbriggs.

My role was as a call-out service engineer and I worked shifts responding to break-ins and service requests from customers.

How did you raise the start-up funding? My brothers and I saved up £4000 over the course of 1985 and the Clydesdale Bank provided an overdraft facility of a further £8000. My older brother Jim's home was on the line as security for the £8000 but we knew we could make the business work and were not worried. We are still with the Clydesdale, which has stuck with us through thick and thin.

What was your biggest break? We found out from an old workmate of my brother that Whitbread was moving into Scotland to develop a restaurant and hotel chain. In 1988, we got the opportunity to work with them and we have done so for the past 20 years. We also gained our accreditations to enable our business to bid for commercial business via the insurance industry in that year too.

What was your worst moment? Apart from Jim, who was the company's managing director, dying very suddenly 10 years ago, in 2002 our alarm receiving centre was flooded in almost three feet of sewage floodwater following a torrential storm. We were at that time responsible for some 5000 alarm systems, and our customers were relying on us 24 hours a day for support.

We had a disaster contingency plan in place to divert our signals to another alarm receiving centre. However, the procedure manuals ended up under water and were ruined. Fortunately, we often carried out dummy run disasters and our contingency worked in action for real.

Our centre sustained more than £100,000 worth of damage to our computers and support kit.

I was impressed by the support of Royal Sun Alliance and our brokers in how quickly we got back up and running in full just under one month. Our staff were great and I won't forget their dedication and support during that very stinky period of time.

What do you most enjoy about running the business? I enjoy the support of our staff, whose average length of service is 10 years and the loyalty of customers who keep us on our toes. We are now working with the sons and daughters of customers who have supported our business.

What do you least enjoy? Being among the last on a list of creditors to be in the hat to be paid when a firm goes bust. We never get paid and I don't enjoy learning about "phoenix" companies starting fresh and leaving a trail of debt behind them.

What is your biggest bugbear? Fragmented procurement processes across local and national government. We can meet inclusion on tenders for some councils but not others, we can be an approved supplier for some public funded authorities but not others. Too many departments exist for public procurement.

In my view this should be streamlined transparent and fair. It's not. If your face does not fit or you don't press the right buttons with individuals, you don't get the chance to put the case for being included. We have supported Scottish jobs for over 20 years, paid all of our taxes and supported our local economy.

In return from government, we hardly receive support back in public security system spend. Much of the spend goes to firms not even based in Scotland. If we received 1% of the budget spend I would be happy.

What are your ambitions for the firm? To retain our existing customers, staff and suppliers and bring on new customers organically and by making further acquisitions to those made over the past few years.

What are your top priorities? Not to wake up dead, taking my four young children's opinions and concerns seriously. On the business front, doing what we say, mean what we say and to be better than our competitors on delivering good service. Also, ensure we deliver our commitments on time to our customers, suppliers and staff.

What could the Scottish Government do to help? Get out of their offices and sit in front of business owners and learn what is really needed to support the true backbone of the economy, small businesses. Without exception, the best working relationships I have are by ensuring a good deal is only good if it's good for both parties.

What is the most valuable lesson you have learned? To open my ears before my mouth, give customers what they want - good service - and never forgetting they have a choice whether to spend their hard earned cash with CSS or someone else and, of course, the old favourite cash is king always was and always will be.

How do you relax? Going for a half-hour walk everyday just to think is great for opening my mind. To relax, I play golf in the summer and squash in the winter whoever loses pays for the curry afterwards. I really relax if